Investigators said police ordered hundreds of vehicles in King City to be towed and owners never got their cars back because they could not afford to pay impound fees or could not speak English. Police officers kept the cars for free, or sold them to make money, Flippo said.

Chief Bruce Miller said he knew the FBI was investigating his department for more than a year, but he had no idea he was considered a suspect until he was being placed in handcuffs.

Chief Bruce Miller said Tuesday was the worst day of his life, and his reputation was tarnished forever.

"There's no coming back from this, even if I'm found innocent. People are always going to look poorly upon me. I think my career is done," the police chief said.

Flippo held a press conference in Salinas at 2 p.m. to release more details on his office's 6-month investigation into corruption and criminal acts within the King City Police Department dating back three years.

"Some officers dishonored their badge. Any time you end up investigating those who are sworn to uphold the law and treat everyone fairly -- and you have violations of that oath -- that is difficult. My conclusion is the citizens of King City deserve better than what they have been receiving," Flippo said.

Investigators said Sgt. Bobby Carrillo acted like the ring leader.

"For every 10-15 vehicles impounded by Sgt. Carrillo, he would receive a free vehicle for himself, or whatever he wanted to do with it," Flippo said.

The investigation was spearheaded by a strong undercurrent flowing through King City in which residents had zero faith in their police department.

While digging for clues, district attorney investigators said they watched KSBW's news coverage of community meetings, where residents voiced their distrust and grievances. As it turns out, the residents were telling the truth, Flippo said.

Flippo said King City residents told him, "The police are taking our property. They are taking our cars. They take our money. And we can do nothing about that."

City Manager Michael Powers said the entire incident is a "black eye" on the community. The investigation has been hanging over the city's head for a while, Powers said, and he is hopeful the arrests will allow leadership in King City to move on.

The small agricultural town off Highway 101 has 17 sworn police officers.

A sign reading "closed" was posted on the front door of the King City Police Department Tuesday. Powers said the police station's front office cannot remain open because so many officers were arrested.

Monterey County Sheriff Scott Miller said, even though nearly half the police force is on administrative leave, residents have no reason to fear that law will not be enforced in their city.

The sheriff said he has a substation in King City and his deputies have stepped in to patrol the streets. The sheriff said he will provide law enforcement while the City Council and City Manager decide on a long-term plan.

"We are available from this point on to provide whatever level of law enforcement services the city of King City needs," Sheriff Miller said.

Baldiviez has continued to receive paychecks from the city ever since he retired in September 2013 because King City owed him so much overtime and vacation pay that he built up during his nine years as chief. VIDEO: Baldiviez announces he is retiring

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